THOUSANDS of elderly people faced an uncertain future after Britain’s biggest care home provider was plunged into chaos, MPs warned.

They urged Ministers to protect residents in homes run by Southern Cross Healthcare, including 43 in the West Midlands.

MP John Spellar (Lab, Warley) demanded action in the House of Commons, telling MPs: “They and their relatives need urgent reassurance and action from Ministers.”

Shares in the firm plummeted after it revealed it was struggling because local authorities were cutting the fees they were willing to pay as a result of budget cuts.

It means the firm’s losses could be even higher than last year – when it made a loss of £47.4 million.

But it was unclear what would happen to care home residents if the business collapsed.

Mr Spellar said the Government should make sure nobody was evicted.

He called on Eric Pickles, the Local Government Secretary, or Andrew Lansley, the Health Secretary, to intervene.

The MP said: “There are 750 homes and 31,000 residents across the country.”